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The instability at the southern Sydney club comes at the worst time for Johnson, who has a considerable adjustment to make after almost a decade at the Warriors.

The NRL confirmed Flanagan's sanction on Wednesday, after an investigation into his dealings with the club during the 2014 season, when he was suspended due to his role in the peptides scandal.

One of the conditions of that suspension was that he would have no contact with the club, but an investigation found that numerous emails had been exhanged between Flanagan and club officials, including communication about recruitment of potential players.

Cronulla have also been fined $800,000 ($838,900) for their role in the breach.

The NRL emphasised the findings are preliminary and no final determination will be made until the response that Flanaghan provides has been properly considered, but also confirmed he will not be permitted to coach or act in any official capacity at the club pending a final determination.